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Why Growth in West Isn’t Boosting Asia

8/1/2013 11:59PM

Manufacturing data out Thursday showed regional economies failing to benefit from the pickup in the U.S., Europe and Japan. The WSJ's Michael Arnold speaks with HSBC's Frederic Neumann about Asia’s dependence on China and what bright spots to look out for.

This transcript has been automatically generated and may not be 100% accurate.

... the ... during data from across Asia this week painted a picture of a regional group is quickly decelerate ... for Asia Today o Michael Arnold ... joining me is Frederic Neumann co head of Asian economic research at HSBC ... for for a long time we saw a data out of Asia that was positive data out of the West that was ... that was disappointing though that ... this that this conflict is in the West is growing but that's not filtering through to the show ... was ... what it's really interesting Asia's compete toppling if you will strongly date is not filtering through into the region ... and one of these the challenges is that China has ... domestic ... problems so it's not ... lifting growth across emerging market will remember China was the engine with emerging markets index now waiting on will love and supporting ... I see no you as a regular reader of it assists in research to know ... you all been a ... proponent of the psyche of the ... debt loads of been growing ... quite quickly for Rhodesia ... at the same time Productivity has been falling ... wondering how how that plays into this that I mean you know as as leverage Bros how does that affect the slowing growth ... what makes economies much mobile mobile to financial volatility and last to three months to see a lot of addictions top ... concerns of a tapering had a ... money market got a crunch in China it's now be a little bit but ... that sensitivity to financial conditions because of high debt means that ... growth is now snowing across emerging markets ... I soon and you know one other things you ... would expect that as growth slows the governments of central banks might step in was more policy easing either ... to cut rates or perhaps an actor stimulus package is a little to boost growth but ... with debt levels rising is there space for governments to step into the breach ... what it's it sounds like doing more with the same and therefore an art that people suggests we should shy away from more stimulus but in some markets ... and China in particular ... more stimulus money needed for the time being just make sure that ... the common isn't going to our mending ... but the same time you also have to put my structural reforms to make sure you're ... putting yourself on a more sustainable path next to twenty ... five years ... no one can wonder you know as you look across Asia are you seeing any kind of bright spots though there were no are you seeing any kind of light at the end of the tunnel here ... well I mean the Bank of Japan still aggressively pushing into ... that the gas pedal if you will that's gonna backstop in August Asia for the time being so ... BRCM economies like the Philippines Thailand and Indonesia ... gonna be a few of support from that even if it will switch on stilts ... in the aisle Weber is a bit of that that type spotlight now see its currency plunged tighter financial conditions of the two giants ... in emerging Asia having trouble the smaller countries Atsi and still moving at all ... Sue is very interesting certainly this is a story that were to stay on top of it the beest dot com ... growth in Asia something that so many people around the world are interested in ... up for thank so much for joining us today ... for Asia Today o Michael Arnold ...